PDF (3.6 MB) - Valora

Financial RepoRt ValoRa 2009
notEs to tHE consolIdatEd fInancIal statEmEnts
Classification depends on the purpose for which the financial assets were aquired and is
determined when the assets are first recognised.
Financial assets at fair value through profit or loss. These include financial assets and derivatives
held for trading purposes, as well as other assets assigned to this category on initial recognition.
Financial assets are assigned to this category if they are acquired with a view to short-term sale.
Financial assets in this category are recorded as current financial assets if they are held for trading
purposes or are intended to be sold within 12 months.
Loans and receivables. Loans and receivables are financial assets whose payment dates and
amounts are either fixed or can be determined and which are not traded in a market. They include
the trade accounts receivable and other receivables which are shown separately on the balance
sheet. They are classified as current assets unless their maturity is more than 12 months after the
balance sheet date.
Held to maturity. This category covers financial assets which the company has the intention
and the ability to hold until they mature. They are classified as current assets if they mature
within 12 months of the balance sheet date or non-current assets if they mature thereafter.
Available for sale. This category covers minority interests (i.e. shareholdings of less than 20%)
and financial assets not assigned to any other category. Financial assets available for sale are
classified as non-current assets.
All purchases and sales of financial assets are recorded on the trade date. Financial assets,
except those held at fair value through profit and loss, are initially recorded at fair value plus
transaction costs. Financial assets held for trading purpose are initially recorded at market value
excluding transaction costs and thereafter, like all other «at fair value through profit or loss» assets,
at their market value. Loans and receivables and financial assets held to maturity are recorded
at their amortised value calculated by the effective yield method. Financial assets available
for sale are carried at market value, using market offered prices where available or model-based
valuations where no market exists. Equity participations which are not traded in a market and for
which insufficient data is available to perform a valuation are carried at cost. Unrealised gains
and losses are credited or debited to other comprehensive income. Enduring or significant impairments
are recorded and charged to the income statement. When an available for sale financial
asset is sold, the valuation adjustments which have been accumulated against shareholders’
equity in respect of it are passed to the income statement.
Interest-bearing debt. Interest-bearing liabilities are carried at their amortised value, with differences
between their initial and maturity values being determined by the effective yield method
and charged to financial expense.
Provisions. Provisions are recorded when the result from the past event can be reliably estimated
and for whose settlement an outflow of cash is probable. Provisions are carried at the present
value, as of the balance sheet date, of the estimated future disbursement due.
Liabilities from employee pension schemes. Valora pays employer contributions to various pension
schemes established according to local legislation. For defined benefit schemes, the present value
of the benefit obligation is determined by an annual actuarial assessment under the projected unit
credit method. These assessments take account of the contribution years accumulated by employees
at the assessment date as well as their expected future remuneration trajectories. The employer’s
pension expense, interest costs and expected investment returns are booked to the income
statement in the period in which they occur. Actuarial gains and losses and the effect of any ceiling
applied to the net pension fund assets are accumulated under other comprehensive income.
Expenses for defined contribution pension schemes are charged to the income statement in the
period in which they are incurred.
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